Microcells (Pvt.) Ltd.

Microcells (Pvt.) Ltd.is a BOI Company that manufactures Industrial Rubber Mat for 100 per cent to the US and EU markets. It is a profit generating enterprise but the Management feels that a more efficient and effective MBO is to be installed in order to enhance its economic efficiency and productivity. The Company therefore approached the IRC for the purpose and having studied the operational and accounting performance of the Co., the IRC recommended three options through a restructuring process. Total acquisition/sale appeared to be hurting the feelings of the Management, a JV Partnership was appreciated and a JV Partnership with 20 per cent shares to be with the present Management seemed more attractive and acceptable.

However, in addition, one of the US buyers of the Co. producta has shown keenness to invest around 25 per cent shares with no intention to interfere with the Co. operations but to confirm its continuity of being a regular buyer. Therefore, IRC recommended 55 per cent controlling shares to be with the Local Investor who wished to have a JV Partnership with Microcells, 25 per cent of shares with the US buyer and 20 per cent with the current Management and this proposition is fully accepted by Microcells Management. This proposal is being looked into more attentively and effectively by the IRC and the selection of the local investor who will have 55 per cent of the controlling shares is being looked into. (Feb. 2013)

Microcells is a sun-rise Company but the delay in the acquisition/Joint-Venture Partnership is due to the fact that the gap between the valuation of the Company and the price offered is somewhat wide and also the Management of Microcells is not keen to embark on either of these investments until and unless the right price is offered. Many an investor came in but without success.

In mid 2014, the DSI another leading Company in the same fraternity showed some interest in acquiring Microcells. Negotiations have commenced by IRC (Pvt.) Ltd but the progress is steady but slow. There is every possibility that the negotiation will be successful. DSI is fully satisfied with the performance of Microcells taking into consideration its market worldwide and its production capacity. Negotiation is in progress (Dec.2014)